A bill of exchange has been negotiated. Under section 90 of the Negotiable Instruments Act, 1881, when are all rights of action on it extinguished because the acceptor comes to hold it in his own…
Question and options
A bill of exchange has been negotiated. Under section 90 of the Negotiable Instruments Act, 1881, when are all rights of action on it extinguished because the acceptor comes to hold it in his own right?
When he holds it at or after its maturity
When he holds it at any time before maturity
When it is presented to him for payment
When it is protested for non-payment
Answer and explanation
Section 90 of the Negotiable Instruments Act, 1881 provides that if a negotiated bill is held by the acceptor in his own right at or after maturity, all rights of action on it are extinguished. If he takes it before maturity, the bill is not extinguished and he may negotiate it again; presentment and protest have nothing to do with this rule.
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